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Representatives of South Korea and Indonesia concluded the
two countries' first joint working meeting on the energy sector Tuesday
by signing memorandums of understanding (MoUs) on a number of projects
involving estimated investments worth up to US$1.5 billion.
Witnessed by the South Korean Commerce, Industry and Energy Minister
Kim Young Joo and Indonesian Energy and Mineral Resources Minister
Purnomo Yusgiantoro, representatives of energy firms from both
countries signed three MoUs on oil, gas and electricity ventures
following on from Monday's meeting between the two sides.
State-owned Korea National Oil Corporation (KNOC) and SK Corp. signed a
MoU on oil and gas exploration with Indonesia's national oil and gas
firm Pertamina.
The second MoU was signed by Korea Western Power and state-owned coal
mining company PT Bukit Asam for the construction of a 400-MW
coal-fired power plant in West Bangko, South Sumatra, while the third
one was signed by Korea Energy and Technology, and Indonesia's Nuansa
Group for the building of the first direct coal liquefaction plant in
East Kalimantan, with a capacity of 5,000 barrels per day.
The Korean delegates and their Indonesian counterparts also agreed to
cooperate on the construction of a liquefied natural gas (LNG)
receiving terminal in Indonesia, and to conduct a joint study on the
preparation and planning for the construction of Indonesia's first
nuclear power plant.
Kogas, the world's largest LNG importer, has said it was also
interested in taking part in the development of a third train
(processing unit) at the LNG plant in Tangguh, Papua.
In addition, Korea Electric Power Corp. (Kepco) and state-owned
electricity firm PLN have also reached an initial agreement for the
building of a gas-fired power plant in Bojonegara, Banten, with an
installed capacity of 750 MW.
Minister Purnomo has estimated that the total investment in these
projects could reach $1.5 billion.
"We hope that the meeting will serve as a good start for both countries
for establishing strong and beneficial cooperation in the energy
sector," Purnomo said.
Meanwhile, Korean minister Kim suggested that Tuesday's meeting should
be followed up by the establishment of working groups, or the holding
of one-and-one gatherings between the relevant parties.
The two sides agreed that a second joint meeting would be held in
Seoul, South Korea, next year.
With its lack of energy and natural resources, South Korea is highly
dependent on imports, partly from resource-rich Indonesia, to meet its
energy needs.
South Korea, which imports 97 percent of its energy and resources
needs, is trying to secure fuel supplies amid rising competition from
other major importers, such as China and India. According to data from
the Korean Ministry of Commerce, Industry and Energy, South Korean
companies plan to invest a record $3.2 billion in overseas oil and gas
projects this year and $577 million in minerals.
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